RES-E remuneration schemes and market frameworks should be further aligned and coordinated across Europe without jeopardizing the ability to adjust them to local contexts.
The commitment and pace of deploying RES-E varies among European member states. Nevertheless, the transition to high shares of RES-E is a European project that will require a joint effort across Europe and cannot be implemented by single countries alone.
With increasing electricity market convergence in many European countries, a further alignment of investment frameworks becomes more important. The coordination of RES-E remuneration schemes and market frameworks across national borders can deliver a number of benefits: increased stability and transparency for investors, economies of scale, increased competition, and improved exploitation of resources. In consequence, European coordination can trigger additional RES-E investment while lowering the overall costs of RES-E deployment. On the other hand, it is important to protect the flexibility of RES-E policies to be able to adjust to local framework conditions. A lack of context specificity can undermine the ability of remuneration frameworks to overcome local market barriers and can lower their public acceptance.
Regardless of whether it is established at national, macro-regional or at EU level, the framework to remunerate RES-E generation investments needs to fulfil the policy principles defined in this paper. Among others, it should permit differentiation between RES-E technologies, prompt adjustment of remuneration levels and locational signals.